volume i, part 4, chapter 5000
TRANSCRIPT
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Chapter 5000
REQUISITIONING, PREPARING, AND ISSUING TREASURY CHECKS
This chapter prescribes the procedures disbursing officers use to requisition,
prepare, and issue four-digit checking account symbol checks drawn on the United
States Treasury. Topics include submitting disbursing officers' signature
specimens, ordering and controlling blank check stock, and inscribing checks.
The procedures apply to all disbursing offices except where otherwise indicated.
For terms and definitions related to this chapter, please view the TFM
Glossary.
Section 5010—Authority
See, inter alia, 31 U.S.C. 321, 3321, 3325, 3528.
Section 5015—Submission of Disbursing Officers' Signature Specimens
This section applies specifically to Non-Treasury Disbursing Offices (NTDO) for
both new check symbols and existing check symbols.
Accountable Officers, who are empowered to designate disbursing officers, must
designate only the minimum number necessary to perform disbursing functions
efficiently. Accountable officers, who are NTDO affirming officials and are
affirming NTDO disbursing officers for their federal entity, must be in a
supervisory capacity to an individual being designated as a NTDO disbursing
officer. In addition to submitting information to Fiscal Service, federal
entities must maintain records of disbursing officer designations and
revocations of authority, including designated disbursing officers' signature
specimens.
5015.10—Manual Signature Specimens
Before issuing checks, a newly designated disbursing officer must forward manual
signature specimens, using FS Form 3023 (see Appendix 4), to the federal entity
official responsible for maintaining disbursing officer signature specimen files
and to Fiscal Service (as indicated by the instructions on the FS Form 3023).
Manual signatures on checks must show a reasonably uniform agreement with the
specimen signatures provided on the FS Form 3023. If the disbursing officer
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elects to change his/her signature or if a change in signature occurs as a
natural development, the disbursing officer must submit a new FS Form 3023 with
new specimen signatures.
The Disbursing Officer should await confirmation from Fiscal Service that FS
Form 3023 has been received and processed before beginning the process of
issuing checks.
For revocation information, see subsection 5015.30.
5015.20—Facsimile Signatures and Submission of Specimens
A facsimile signature is a reproduction of a manual signature that can be saved
electronically or by engraving or imprinting. The use of facsimile signatures
facilitates the affairs of government personnel or any officials to conduct
business, because an authorized officer’s facsimile signature has the same
weight as his manual signature. The creation of rubber signature stamps and the
action of stamping an authorized officer’s signature on U.S. Treasury checks
with a rubber stamp is strictly prohibited.
The legal basis for using a facsimile signature - facsimile of an official's
actual signature - is specifically authorized under the Uniform Facsimile
Signatures of Public Officials Act only for executing public securities and
instruments of payment.
In addition to the requirement in subsection 5015.10, a disbursing officer may
use a facsimile signature, if necessary. If a disbursing officer would like to
use a facsimile signature, he or she must submit an official letter to Fiscal
Service informing Fiscal Service of the use of facsimile plates or electronic
facsimile signatures in place of manual signatures. The official letter should:
Identify the NTDO disbursing officer whose signature is to be converted
to facsimile signature,
Identify the appropriate Agency Location Code (ALC),
Be signed by an appropriate accountable officer from the federal entity
who is a NTDO affirming official, who can affirm NTDO disbursing
officers for their federal entity, and must be in a supervisory
capacity to the individual who is the NTDO disbursing officer whose
signature is to be converted to facsimile signature,
Include an assurance statement of the controls in place that confirm
essential security safeguards against unauthorized use of the facsimile
plates or the electronic facsimile of the provided signature, and
Letters should be sent to the Policy and Oversight Division (see
Contacts).
When a facsimile plate or electronic facsimile signature is withdrawn from
service, or is to be destroyed, due to the revocation or expiration of a
disbursing officer’s designation, (see subsection 5015.30 for how to notify
Fiscal Service) and is not to be used again, it must be destroyed and purged
from any payment system and any backup systems per procedures established by
the federal entity involved. When a facsimile plate has been destroyed, a
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properly executed certificate identifying the specific plate and date of
destruction must be given to the disbursing officer and the federal entity
official responsible for maintaining specimen signature files. Federal entities
should follow applicable federal and industry information technology regulatory
requirements and standards when destroying an electronic file of a facsimile
signature. For specific information related to these regulations and
requirements, please contact the Policy and Oversight Division (see Contacts).
5015.30—Revocation of Designation
When an individual for whom a delegation or designation is on file with Fiscal
Service departs or otherwise becomes ineligible to act (including through
reassignment, retirement, departure, death, etc.), a responsible Accountable
Officer should forward to Fiscal Service a FS Form 3023 (see Appendix 4)
revoking the delegation or designation of the departing or ineligible Designee.
Revocations are effective as of the latter of the effective date requested by
the federal entity on the form or the Fiscal Service verification date in
Section VI of the FS Form 3023.
When using FS Form 3023 to document a revocation, the submitting federal entity
must complete Sections I, II, IV, and V of the form. Revocation forms do not
require sample signatures of the individual whose authority is being revoked
(Section III), but they must be initialed in Section IV to confirm that any
facsimile signature has been destroyed as part of the revocation, and signed in
Section V by an appropriate Accountable Official.
Section 5020—Specifications and Characteristics of Treasury Checks
5020.10—General Physical Characteristics
Blank Treasury checks measure 3-1/4” wide and 7-3/8” long (after bursting and
separation from check formats) and are printed on 28-pound paper. The paper used
for Treasury checks has a distinct watermark pattern (consisting of both
“shaded” and “wire”) manufactured in the paper. This pattern is continuous with
“U.S. TREASURY” repeated randomly. The watermark design reads both forwards and
backwards. The color of the check is multihued, ranging from light blue to pale
peach, featuring the Statue of Liberty boldly engraved on the left side of the
check and faintly reproduced in the middle of the check.
Blank Treasury checks currently come in several formats for use in different
types of printing machinery (see subsection 5020.20, below). Note that most of
these formats will be discontinued and no longer available after October 01,
2020. Only Treasury check formats H & K will remain available after that date.
5020.20—Blank Check Formats
Disbursing offices may order blank checks in any of the following formats
according to their needs:
Format D—A marginally punched, continuous-form single checks. The
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overall width is 8 1/2 inches, including a 9/16 inch perforated
marginal aligning strip left and right, with the option of having the
marginal aligning strips removed prior to shipping. Horizontal
perforation every 3 1/4 inch. Fanfolded every fourth check in unbroken
strips, no splices. These checks are packed in cartons of 1,000, 2,000,
or 4,000 checks. Effective October 01, 2020, this blank check stock
format will no longer be available.
Format E—A one-up (one sheet with a single check) marginally punched
continuous form checks with a check-sized statement on the right. The
overall width is 15 7/8 inches, includes a 9/16 inch perforated
marginal aligning strip left and right, with the option of having the
marginal aligning strips removed prior to shipping. An additional
vertical perforation will be required 7 15/16 inch from left and right
edge (center). Horizontal perforation every 3 1/4 inch. Fanfolded every
fourth check/statement in unbroken strips, no splices. These checks are
packed in cartons of 2,000 checks/statements or 4,000
checks/statements. Effective October 01, 2020, this blank check stock
format will no longer be available.
Format F—(Grids only) A marginally punched, continuous form of two
checks in tandem. The overall width is 15 7/8 inches, including a 9/16
inch marginal aligning strip left and right, with the option of having
the marginal aligning strips removed prior to shipping. An additional
vertical perforation will be required 7 15/16 inches from left and
right edge (center). Horizontal perforation every 3 1/4 inch. Fanfolded
every fourth check/statement in unbroken strips, no splices. These
checks are packed in cartons of cartons of 2,000 (4,000 total grids) or
4,000 (8,000 total grids). Effective October 01, 2020, this blank check
stock format will no longer be available.
Format GS—A one-up marginally punched sheet of check and statement,
with option of having check above or below statement. The overall width
is 8 1/2 inches, includes a 9/16 inch perforated marginal aligning
strip left and right, with the option of having the marginal aligning
strips removed prior to shipping, depth 13 inches. Horizontal
perforation every 3 1/4 inch. Each sheet will yield two (2) checks and
two (2) statements. These checks are packed in cartons of 1,000 or
2,000 checks/statements. Effective October 01, 2020, this blank check
stock format will no longer be available.
Format H—A two-up (one sheet with two checks side by side) marginally
punched continuous roll. The overall width is 15 7/8 inches includes a
9/16 inch marginal aligning strip left and right. Each roll contains a
leader strip (with alignment marks) minimum of five (5) feet, 80,000
total checks, and a trailing strip of five (5) feet minimum. Maximum
roll size 30 inches in diameter with a 5 inch (inside diameter)
suitable core. NOTE: All splices, including mill splices and flying
splices, are unacceptable. The checks do not have any preprinted symbol
or serial numbers. A consecutive inventory control number (ICN) is
printed at the top of each check. There are 80,000 checks per roll.
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Format I—A one-up marginally punched, continuous-form check with a
statement on the left side. The overall width is 15 7/8 inches,
includes a 9/16 inch perforated marginal aligning strip left and right,
with the option of having the marginal aligning strips removed prior to
shipping. An additional vertical perforation will be required 7 15/16
inches from left and right edges (center). Horizontal perforation every
3 1/4 inch. Fanfolded every fourth check/statement in unbroken strips,
no splices. These checks are packed in cartons of 2,000 or 4,000 checks
and statements. Effective October 01, 2020, this blank check stock
format will no longer be available.
Format J—A one-up marginally punched sheet. The overall size is 8 1/2
inches x 13 inches, includes a 9/16 inch perforated marginal aligning
strip left and right, with the option of having the marginal aligning
strips removed prior to shipping. Horizontal perforations every 3 1/4
inch. Each sheet will yield four (4) checks, detached size 7 3/8 inches
x 3 1/4 inches. Checks are packed in cartons of 1,000, 2,000 or 4,000
checks. Effective October 01, 2020, this blank check stock format will
no longer be available.
Format K—A two-up, marginally punched, continuous roll with a statement
below the check. The overall width is 15 7/8 inches, including a 9/16
inch perforated marginal aligning strip left and right side, with
horizontal perforations at the bottom of each check every 6 1/2 inches.
Each roll must contain a leader strip (with alignment marks) a minimum
of five (5) feet, 40,000 checks and 40,000 statements, and a trailing
strip of five (5) feet minimum. NOTE: All splices, including mill
splices and flying splices, are unacceptable.
Format M—A One-up marginally punched sheet of check and one (1)
statement, with option of having check above or below statement. The
overall size is 8 1/2 inches x 13 inches or 11 inches. Includes a 9/16
inch perforated marginal aligning strip left and right, with the option
of having the marginal aligning strips removed prior to shipping. A
horizontal perforation is at the bottom edge of the check when above
statement and at the top edge of the check when below statement. Each
sheet will yield one (1) check, 7 3/8 inches x 3 1/4 inches, and one
(1) statement. Checks are packed in cartons of 1,000 checks and
statements. Effective October 01, 2020, this blank check stock format
will no longer be available.
5020.30—Statement Printing Options
For check formats listed in subsection 5020.20 that have a statement, the
statement may be preprinted with the check serial number and other information
desired by the disbursing offices, as described by the options in this
subsection.
The following statement printing options are available for formats E, GS, I, K,
and M:
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Option A: Number only,
Option B: Personalized imprint only,
Option C: Statement back only,
Option D: Number and personalized imprint,
Option E: Number and statement back,
Option F: Personalized imprint and statement back, and
Option G: Number, personalized imprint, and statement back.
NOTE: All of the above-listed formats, as well as Format J, will be discontinued
and no longer available after October 01, 2020.
The following formats also are available for testing equipment and software:
Test grid checks in Formats D and J, and
Specimen checks in Formats H and K.
5020.40—Check Symbol Numbers
Checks with serial numbers are preprinted with the four-digit checking account
symbol assigned to the disbursing office from which the checks will be issued.
Fiscal Service’s Philadelphia Financial Center (PFC) Analysis, Reconciliation &
Reporting Section (see Contacts) controls and assigns checking account symbol
numbers. The checking account symbol number is in the upper right corner of the
check, just before the preprinted serial number. These two numbers, separated by
a hyphen, constitute the unique check number. The checking account symbol number
and related check digit are preprinted in ink in magnetic ink character
recognition (MICR) positions 53 through 49.
5020.50—Check Serial Numbers
Checks are preprinted with an eight-digit serial number in the upper right
corner after a hyphen, immediately following the check symbol number. Serial
numbers must not be duplicated within the same checking account symbol. Serial
numbers for each account symbol begin with 00001000 and continue through
99999999. The serial number and related check digits are preprinted in MICR
positions 31 through 23.
When all serial numbers of a check symbol have been used, Fiscal Service will
assign a new checking account symbol for the next supply of checks, if
necessary. Accordingly, as serial numbers of checks issued approach 99999999,
the disbursing officer should notify the Analysis, Reconciliation & Reporting
Section (see Contacts) so a new checking account symbol can be assigned before
the next supply of blank checks is ordered. When ordering the new check supply,
the disbursing officer should allow additional time for the proof to be changed,
in addition to the time normally required to print and deliver the checks (see
subsections 5025.30 and 5025.40).
5020.60—Emergency Check Stock
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Under emergency situations only, disbursing offices may use their print systems
to produce prenumbered and MICR-encoded check stock for use by other disbursing
offices within that federal entity. Disbursing offices with blank check stock
must have high-volume check printing equipment using check stock without
preprinted check symbol/serial numbers and MICR encoding must have check
printing equipment that can print the check symbol/serial numbers and related
MICR encoding on the blank check stock.
For example, if office “A” has a fire and its entire supply of check symbol
1234 check stock is destroyed, and office “B” has high-volume printing
equipment, then disbursing office “B” can create a limited supply of emergency
check symbol 1234 checks for office “A” to last until regular stock is available
through normal channels. The emergency check stock created must bear the check
symbol 1234 and check serial numbers in the 90-99 million range. The disbursing
Officer signing the emergency checks must be authorized to sign checks for that
check symbol.
Another example where emergency check stock systems may be used is during
unexpected military deployment. Emergency military checks will bear the
appropriate check symbol and serial numbers in the 90-99 million range. Manual
signatures for emergency check stock should be submitted to the same federal
entity official responsible for maintaining disbursing office signatures (see
subsection 5015.10). The disbursing office must notify the Analysis,
Reconciliation & Reporting Section of the check symbol and serial number ranges
involved before the creation and use of emergency checks.
Disbursing offices must not use the emergency check stock system to avoid
ordering checks through normal channels. Any emergency check stock must be
created under the following conditions:
It must be produced on a print system that has a post/print
verification feature to ensure the integrity of the printed and MICR
encoded symbol serial numbers, and
Internal control procedures must be in place to prevent issuing
duplicate payments bearing the same check symbol/serial numbers.
5020.70—Transit Number Symbol
Blank Treasury checks bear transit number symbols preprinted in magnetic ink
within the 1/2-inch band provided at the bottom of the document. This number,
00000051, plus the check digit “8”, are in MICR positions 42 through 34. The
transit number symbol (stroke 10, a measurement as part of the MICR font) shall
be pre-printed in MICR positions 33 and 43. The banking system uses the transit
number symbol to route and process items for payment. Disbursing offices should
verify the accuracy of these transit number symbols and other preprinted and
MICR-encoded information before using or issuing checks.
Section 5025—Requisitioning Treasury Checks
5025.10—Contract Information
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The U.S. Government Printing Office (GPO) awarded a one-year base contract with
3 option years, a 5-year contract for printing blank checks and exercises
overall control over their procurement, while administrative control is
exercised by Treasury’s Mission Support Services. After each contract is
awarded, the Mission Support Services (see Contacts) issues a notice to all
disbursing offices specifying the unit cost of blank checks by type of format
and changes to related costs, such as new or revised proofs. Prices are subject
to annual changes based on the Bureau of Labor Statistics (BLS), Consumer Price
Index for All Urban Consumers-Commodities Less Food (CPI), excluding paper and
reimbursable postage or transportation costs. Paper prices also are subject to
change monthly because of fluctuating costs. This change is based on the BLS
Producer Price Indexes Report (BLS code 0913-01) for Offset & Text, Table 6—
Producer Price Indexes and Percent Changes for Commodity Groupings and
Individual Items.
Current contract information inquiries should be directed to the Mission Support
Services (see Contacts).
5025.20—Designation of Officials Authorized to Sign Check Requisitions
Before any check print orders are submitted, the ordering federal entity must
designate one primary and one alternate official as having authority to sign
check print orders. Federal entities designate these officials by completing a
FS Form 1186: Signature File-U.S. Treasury Check Orders (see Appendix 3), and
submitting the completed form to the Analysis, Reconciliation & Reporting
Section (see Contacts). The Analysis, Reconciliation & Reporting Section uses
the FS Form 1186 to verify the signature on check print orders and to ensure
that only authorized officials requisition checks.
5025.30—Treasury Checks Order Form
Disbursing offices use FS Form 2431: U.S Treasury Checks Order Form (see
Appendix 1), to order checks, proofs, and revisions to proofs. (Exception-Fiscal
Service's Resource Management Division solicits and consolidates the
requirements of Fiscal Service Regional Financial Centers on an annual basis and
prepares FS Form 2431s, as appropriate for Treasury Disbursing Offices.)
Current contract prices for check formats and new or revised proofs apply to
orders approved by Fiscal Service and received by the contractor up to midnight
of the last day of the contract period. All such orders must be delivered
within 30 workdays after the contract expires. Disbursing offices must not
request that the contractor make deliveries more than 30 workdays after the
termination of the contract under which an order is placed. When an order is
submitted near the end of a contract period and the disbursing office is placing
an order under that contract, it should allow Fiscal Service a minimum of three
workdays to process the order and to deliver it to the contractor before the
period expires.
Disbursing offices may submit orders requesting deliveries over a period of
time. However, final delivery must be made within 30 days after the contract
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expires.
When specifying delivery dates, disbursing offices should allow two months for
printing time (including approval of the order by Treasury and GPO). They should
allow an additional two weeks when a change to the check proof is requested.
5025.40—Check Proofs
On proof orders that call for a change in the check imprint or format,
the Mission Support Services will forward to the federal entity's administrative
office a photo-print proof of the check provided by the contractor. An
authorized individual from the requesting federal entity must review and approve
the proof. The federal entity should retain a copy of the proof and must return
the original promptly to the Mission Support Services. The approved proof
authorizes the contractor to proceed with printing the checks as ordered.
Treasury's Mission Support Services must have in its possession an approved
proof from the federal entity before placement of an order for checks.
5025.50—Quantities of Checks
Disbursing offices should order a supply of checks to last a year, unless there
is a good reason to request a supply for a longer or shorter period. They should
explain the methodology used to determine the quantity of checks needed to last
a year, as well as any such reason why the supply is to last for a shorter or
longer period of time on FS Form 2431 under “Remarks.” The minimum amount of any
format, except roll stock, is 100 checks. Smaller quantities can be requested in
multiples of 100. Larger quantities must be in multiples of 1,000.
5025.60—Check Numbers
The initial order for serially numbered checks must specify that the numbers
begin with 00001000. All serial number ranges end in xxxx999 for quantities in
multiplies of 1000, and in xxxx99 for quantities of 100. Subsequent orders must
specify serial numbers that follow exactly in sequence as those on preceding
orders
5025.70—Shipping
The contractor ships check orders to the delivery destination designated on FS
Form 2431 via express package carrier or registered mail if express packages
cannot be accepted. However, roll stock is palletized and ships via armored
carrier. The contractor sends an advice of shipment notice to the consignee when
the order is shipped.
The contractor prepays all shipping charges. These charges are included in the
contractor's invoice.
5025.80—Cancellation of Orders
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If production operations have begun, Treasury's Mission Support Services advises
the disbursing office of the cost charged. Then, the FS Form 2431 requesting the
order is canceled, properly notating the amount charged, and is used as the
basis for the contractor's invoice to GPO.
When a print order has been canceled, the disbursing office or its
administrative office must notify the Analysis Reconciliation & Reporting
Section (see Contacts).
Section 5030—Safekeeping and Control of Blank Check Stock
5030.10—Safekeeping
Disbursing officers are responsible for strictly protecting blank checks against
loss or theft. Procedures should include such security measures as the
following:
The level of security required for blank check stock (BCS) storage and
construction of a secure storage room or installation of a GSA-approved security
container is addressed in the context of the following:
the level of risk to which BCS is exposed,
other security provided by the facility within which BCS is located,
and
meeting minimum requirements set forth for the protection of BCS.
Disbursing offices may store BCS in either an appropriately protected GSA-
approved security container or in a secure room (see Appendix 2). BCS storage
should provide a high standard of security against theft and should prevent
damage to checks from moisture, light, and heat.
The container must be protected by volumetric or capacitance intrusion detection
devices for which alarms result in appropriate, timely responses. Volumetric
devices detect the presence of a body or moving object within a specific area
via the use of infrared, microwave, or sonar measurement devices. Capacitance
devices detect intruders via the use of measurement devices that detect
electrical properties of the human body. Typically, both volumetric and
capacitance detection devices are used together to reduce the likelihood of
false alarms. Used in concert, these two types of devices can detect relatively
harmless intruders, such as mice, while simultaneously indicating that the
electrical measurements of the intruders do not indicate human bodies;
therefore, no alarm is initiated. Each type of detection device has its
strengths and weaknesses, which must be considered in designing a system that
makes effective use of both types of technology.
Note:
All intrusion detection devices must be connected to a manned, 24-hour
monitoring station and must use supervised or secure lines. The
monitoring station must be supported by an appropriate, timely response
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capability.
If volumetric devices are used, dual technology volumetric intrusion
devices are preferred because they minimize the potential for false
alarms.
Disbursing offices must restrict access to BCS storage to officially authorized
persons only. They must log entry and exit to BCS storage and must maintain the
logs for a minimum of one year. Automated access control into and out of the
secure area is recommended in lieu of manually maintained logs but is not
mandatory.
Disbursing offices should prohibit smoking, eating, or other activities that
could damage BCS in the storage area.
Access controls such as lock combinations or personal identification numbers
must immediately be changed when the possibility of compromise exists.
Circumstances that warrant combination changes include the following:
the transfer, retirement, termination, or resignation of a person
having the combination or access code,
installation of new secure storage areas,
repairs being made to the locking mechanism,
upon notification that any records containing combinations or access
control codes or devices have been lost, stolen, or compromised, and
one year has elapsed since the combination or access control codes were
changed.
Access control cards and similar devices must be immediately deactivated any
time the individual to whom issued no longer requires access or when the
individual retires, resigns, or is terminated.
Intrusion detection devices must be installed in the secure room and must be
coupled with an appropriate and timely response capability (for instance,
Federal Protective Service, contract security, police, or other designated
personnel). Automated assessment capability is acceptable; however, response
capability must exist.
Officially designated persons should inspect and lock secure storage containers
or areas for BCS storage. Persons so designated should inspect the secure
container or storage area before locking and should certify the result of the
inspection and the security of storage in a written log.
The disbursing officer or an authorized representative should conduct
unannounced inventories of blank checks at irregular intervals. Unannounced
inventories should be conducted at least every 60 days. Irregularities should be
investigated immediately, and any loss or theft should be reported as prescribed
in subsection 5030.20.
5030.20—Loss or Theft
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Immediately upon discovery of lost, missing, or stolen blank checks, the
disbursing office must notify, via telephone, the Fiscal Service's Security
Division via the Fiscal Service IT Service Desk . The disbursing office should
follow up with a letter, fax, or email. Fiscal Service, as appropriate, will
refer incidents to the Treasury Inspector General. The follow-up notification
must include the following:
The checking account symbol and serial numbers of the checks involved,
and
A statement giving complete information concerning the circumstances of
the lost, missing, or stolen checks. If the loss involves a range of
consecutive serially numbered checks, only the beginning and ending
serial numbers of the range are needed.
Disbursing officers should report checks that are discovered to be missing,
lost, or stolen before issuance (including any items missing from blank check
shipments received from the contractor), as voids, per TFM Volume I, Part 4,
Chapter 6000, subsection 6040.10. Contact the Analysis, Reconciliation &
Reporting Section for guidance (see Contacts).
5030.30—Quality Control Inspections and Reporting Irregularities
Immediately before using blank checks, the disbursing office must examine a
sample group to ensure the checks are satisfactory and bear correct preprinted
information. The checks must have a proper background tint and printing that is
clear, complete, and of uniform density with no smears or blotches. The
disbursing office must verify preprinted checking account symbols and serial
numbers, MICR encoding, and other information to ensure there are no
discrepancies.
If discrepancies between preprinted check symbols and serial numbers, or other
defects are discovered, the disbursing office must notify Treasury's Mission
Support Services, which then notifies the contractor for replacement or credit
(providing the number of items involved is large enough to warrant such action).
The disbursing office must void and process the irregular checks per TFM Volume
I, Part 4, Chapter 6000, Section 6040. It must handle apparent gaps or “skips”
within the serial number ranges as possible losses of the items bearing the
missing serial numbers, per subsection 5030.20.
5030.40—Disposition of Unused BCS
When a new disbursing officer acquires the four-digit check symbol checking
accounts of his or her predecessor, he or she also acquires the unused BCS.
Checks preprinted with check symbol numbers must not be altered nor issued over
a different account symbol.
Disbursing offices have been given authority to destroy unused checks locally
and to report the destroyed checks as void checks, see TFM Volume I, Part 4,
Chapter 6000, Section 6040.
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If disbursing offices destroy unused checks, it must be done by shredding or
incineration on site or at an approved federal shredding facility outside of the
disbursing office, after which the shredding fragments may be disposed of as
waste. Shredded fragments must not be larger than 1/8th inch in width and 3½
inches in length. Fiscal Service requires the use of a cross-cut shredder. The
incineration method of destruction may only be used, subject to environmental
regulations, when a disbursing office does not have shredding equipment. The
Policy and Oversight Division (see Contacts) must approve the use of alternative
facilities.
The disbursing office must complete and submit to the PFC Analysis,
Reconciliation & Reporting Section a Certificate of Destruction, signed by the
disbursing officer and three witnesses to the actual destruction, each time
checks are destroyed. The Certificate of Destruction must show the method and
date of destruction, the quantity of checks destroyed, the applicable check
symbol number, and the serial numbers of the checks destroyed (beginning and
ending numbers for each range of consecutively numbered checks). The disbursing
officer should retain a copy of the Certificate of Destruction as part of the
blank check inventory control records.
Section 5035—Drawing and Inscribing Treasury Checks
5035.10—Protection of Checks in Process of Preparation
Disbursing officers must maintain efficient controls for checks in the process
of preparation. These controls must be designed to protect against loss or theft
and must provide for prompt disclosure of check loss or theft. See subsection
5030.20 for procedures to follow in the event of loss or theft.
5035.15—Postprint Verification of Checks Without Preprinted Check Symbol and
Serial Numbers
Check printing systems using checks without preprinted check symbol and serial
numbers must have a postprint verification unit that reads and verifies certain
critical data elements after the optical character reader-B (OCR-B) and MICR
data have been printed. The data elements read are the OCR-B check symbol,
serial number, the dollar amount, and the entire MICR line. The system must
internally calculate the check digits for the check symbol and serial number on
the MICR line and must verify correctness. It must compare the MICR data with
the OCR-B data and both the OCR-B and MICR data with the data from the input
tape. If any character fails to verify correctly, the check or checks must be
rejected, marked “void-not negotiable,” and reprinted correctly at a later time.
5035.20—Mechanical Equipment for Drawing Checks
Disbursing offices should select machinery per its ability to draw checks
according to procedures and standards in this chapter. Disbursing offices should
not enter requisitions for checks with radical changes in standard forms just to
accommodate the peculiarities of a certain machine. In addition, the disbursing
office should consider the manufacturer's ability to service the machinery when
selecting any equipment.
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Disbursing offices should maintain the equipment to produce the best results in
writing checks. Adjustments that provide for placement and alignment of the data
added to the check must always be in good order. The inking mechanism should
receive careful attention. Excessively inked ribbons and worn ribbons should not
be used.
5035.20a—Requirements Applicable to Check Signing Machines and Payment Systems
Machines and payment systems that print facsimile signatures on checks shall
comply with the applicable federal and industry information technology
regulatory requirements and standards to prevent unauthorized use of the
equipment and the disbursing officer's facsimile signature. For specific
information related to these regulations and requirements, please contact the
Policy and Oversight Division (see Contacts).
5035.25—Quality Standards of Printing
The printed or written characters of the data added in drawing checks, including
the facsimile signature, should have sharp lines, a continuous and homogeneous
deposit of ink, and no filling. Also, the characters printed using ribbon
technology must not have a pronounced ribbon pattern. Data added in drawing
checks must show no appreciable impairment of legibility after being passed
through endorsers. Contrast between added printed or written data and the
surface tint of the check should ensure high legibility for accurate reading in
rapid handling and should serve as a deterrent to alteration.
5035.30—General Instructions for Inscribing and Positioning of Data Added to
Checks
The correct position of the date, amount, payee's name, and signature of the
disbursing officer is determined by the physical characteristics and layout of
the blank check. Disbursing officers must avoid deviations from the normal
positioning of this information on checks. If not reprinted on the checks by the
contractor, the disbursing office must ensure that the place of issue and the
object for which drawn are shown on checks before issuance. To standardize
printing and facilitate accuracy verification, words on checks should be
inscribed in all uppercase (that is, capital) letters and punctuation should be
omitted, except commas used in addresses and to set off names of more than two
payees. Spaces that would invite or facilitate alteration and addition must not
be left unfilled. Data not essential for issuance and payment should be reduced
to a minimum and may appear only to the left of the center of the check, just
above the line running completely across the face of the check above the MICR
line.
5035.35—Inscription of Payee Name and Other Identification Data
5035.35a—Payee's Name
Checks must be clearly inscribed with the complete payee name to facilitate
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accurate payee identification at the time of check negotiation. Disbursing
offices, and others, that prepare vouchers and schedules on which disbursing
offices must rely when preparing checks must write the names in a manner that
will ensure proper identification procedures. To ensure correct endorsement and
for other customary reasons, the surname of the payee should appear last. The
correct order is first name, middle name or initial, and last name. Where the
payee has an often-used surname, the use of initials only (such as “J D MILLER”
or “R T JONES”) in lieu of full given names can cause confusion as to the
identity of the rightful payee. When a payee's legal given name consists of
initials only, the words “Initials Only” should be shown after the initials.
In view of the important services provided by banks and merchants that cash
Treasury checks, the federal government has a special obligation to see that
payees' names, as they appear on checks, contribute to prompt and specific
identification of the payees when the checks are presented for cashing or are
received by banking institutions for deposit to the payees' accounts.
Requirements for inscribing checks drawn to federal entities of the federal
government are prescribed in TFM Volume I, Part 5, Chapter 2000, Section 2020.
5035.35b—Address
When checks are to be mailed, the full and complete address of the payee must
be entered on the checks or envelopes, including as necessary: rural route
numbers, box numbers, house numbers, zip codes, and any other information
essential to correct delivery.
5035.35c—Other Identification Data
Checks drawn to commercial concerns, institutions, grantees, or vendors often
require account or invoice numbers and other kinds of identification data, as
well as the payee name, in order to be properly applied to the account for which
moneys are due. Such identification data must be inscribed on the checks on the
basis of voucher-schedules of payments prepared by the federal entities per TFM
Volume I, Part 4A, Chapter 2000. Disbursing offices must not place
identification data in any position on a check where it is visible through the
envelope window. In the absence of such data on the voucher-schedules,
enclosures (that is, invoices, tear-off coupons, or other forms) containing the
identification data may be provided for mailing with the checks.
5035.40—Position of Check Issue Date
Disbursing offices must write the date of issue in the upper right portion of
the check, either above or below the check number.
The date must be written in month (spelled out or abbreviated), day, year
sequence.
5035.45—Restriction on Postdating of Checks
Disbursing offices must not inscribe checks with a date of issue that is later
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than the date the checks are delivered to the payees. If the checks bear issue
dates predetermined in accordance with a time schedule, they must not be
delivered to the payees in advance of the scheduled payment date. However,
mailed checks should be released to the U.S. Postal Service reasonably in
advance of the issue date to allow for transit time.
5035.50—Inscription of Check Amount
The check amount must be printed per the quality standards prescribed in
subsection 5035.25. The amount must be printed in clearly distinguishable type
characters. For example, the “l” and “7” must be clearly distinct. In addition,
the type should be of a conservative and standard design and of a size to
discourage alteration and make any attempts at altering figures clearly evident
(OCR-B is recommended). Particular attention should be given to characters that
might be susceptible to conversion to a higher figure; for example, altering a
“1” to a “7” or a “3” to an “8”. The printing should be of large enough size to
withstand folding, spindling, and small tears. The check amount data should not
be visible through the envelope window in the address field, since the numbers
might confuse U.S. Postal Service address-scanning equipment.
5035.50a—Printing of Dollar Sign
If the amount is printed once, only in numerical figures, then the dollar sign
must be included as part of the amount printing. If the amount is printed twice
on the checks (once in numerical figures and the second in alphabetical letters)
the dollar sign does not have to be used for the numerical figures, provided
these figures are printed within the convenience amount box and all available
print sections within the block contain asterisks.
5035.50b—Printing and Positioning of Marginal Amount
On checks without preprinted amount boxes, the amount of the check should appear
in the right-quarter section of the check in the area above the signature of
the disbursing officer and below the check number. It should be in horizontal
alignment with the name or address of the payee. The amount figures should fill
their allotted area completely. No space should be left unfilled that might be
susceptible to use for fraudulent insertion.
5035.50c—Inscription of Medial Amount in Body of Checks
Writing the amount in the body of a check in words (usually feasible when a
machine capable of writing words is used) provides the disbursing office and
Treasury greater safety against alteration of amount. Therefore, Treasury
encourages this practice. However, if the disbursing office determines that a
substantial cost savings would result from not writing the medial amount,
Treasury permits this.
If the disbursing office determines that substantial cost savings would result
from writing the medial amount in figures, either of the following forms may be
used: “$50and75cents” or “$50and75/100”. No spacing appears within an amount
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written in either form. Contact the Policy and Oversight Division for guidance
(see Contacts).
5035.50d—Maximum Amount for Which Checks Can be Issued
Disbursing offices must not issue a check in an amount exceeding $99,999,999.99.
When it is necessary to make payment in excess of this amount by check, the
disbursing office must issue two or more checks. Disbursing officers should also
consider contacting Fiscal Service to discuss alternative payment options in
place of large dollar check payments.
5035.55—Signatures of Disbursing Officers
Each check issued must bear one of the following:
the manual signature of the disbursing officer, or
an approved facsimile signature of the disbursing officer.
5035.55a—Manual Signatures of Disbursing Officers
Manual signatures must substantially conform with the specimen signatures
previously submitted on FS Form 3023 to the federal entity official responsible
for maintaining specimen signature files (see subsection 5015.10). Disbursing
officers should avoid awkward or unusual conditions that would cause an abnormal
signature on the checks. A permanent black ink should be used for manual
signatures. The ink should not be subject to fading and should not be readily
soluble in water.
5035.55b—Facsimile Signatures
When facsimile signatures are used, the disbursing officer's approved facsimile
signature must be printed on checks in accordance with subsection 5035.20a. The
facsimile should appear within a frame or border that conforms to the design
adopted by the disbursing officer's department or administrative office.
5035.60—Space Provided for Printing in Magnetic Ink
The standard Treasury check format provides space at the bottom of the check for
information encoded in magnetic ink used by banks in proof and payment
operations. This MICR area extends from the bottom edge of the check to 9/16
inches from the bottom edge of the check and across the entire 7-3/8 inch
length of the check. Disbursing offices must be careful not to enter printed
data within the 1/2-inch MICR band at the bottom of the check.
5035.65—Controls to Prevent Release of Imperfect Checks
Disbursing offices must establish controls to prevent the release of imperfect
checks. They should treat checks prepared on defective check stock or bearing
erasures, alterations, overprinting, strike-overs, and imperfect letters or
figures as spoiled and should void them. Disbursing offices must deface and
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dispose of imperfect checks as prescribed in TFM Volume I, Part 4, Chapter 6000,
Section 6040, to prevent the possibility of the imperfect checks being
negotiated.
5035.70—Imperfect Checks Returned by Holders
If a holder returns an imperfect check, the disbursing office must carefully
examine the check to determine:
If the imperfection may have occurred during the issuance process, or
was the result of accidental mutilation after issuance, or
If the imperfection and circumstances surrounding the return of the
check constitute likely evidence of an attempt to alter or fraudulently
negotiate the check.
Depending on the circumstances, the disbursing office must take the appropriate
action as described in subsection 5035.70a or 5035.70b.
5035.70a—No Apparent Evidence of Attempted Fraud
If the inspection reveals no basis that the imperfection resulted from an
attempt to fraudulently alter the check, the disbursing office should issue the
holder an alternate serially numbered check. See TFM Volume I, Part 4, Chapter
6000, Sections 6030, 6040, and 6045, for procedures concerning spoiled and
voided checks.
5035.70b—Evidence of Possible Fraud
If a check returned by a holder bears evidence of attempted fraud, the
disbursing office must notify the Fiscal Service's Security Division via the
Fiscal Service IT Service Desk 304-480-7777 . Fiscal Service, as appropriate,
will refer these incidents to the Treasury Inspector General. The disbursing
office must also submit an on-line unavailable check cancellation transaction to
the Treasury Check Information System (TCIS).
Contacts
For inquiries concerning contract prices and other contract related matters;
shipping costs; notices to cancel orders for blank checks; and notices of
problems, defects, or missing items in shipments received from the contractor,
contact:
Mission Support Services -
Communications and Document Services Branch
Department of the Treasury
1500 Pennsylvania Avenue, NW
Washington, DC 20220
Telephone: 202-622-2150
Email: [email protected]
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Direct requests for assignment of check symbols; submission of FS Form 3023s;
submission of FS Form 1186s; prenotification of check symbol and serial numbers
involved in emergency check stock cases; submission of FS Form 2431;
notification of canceled print orders; and missing, lost, or stolen (before
issuance) checks, including items missing from blank check shipments received
from the contractor that were not replaced, to:
Attention: Analysis, Reconciliation & Reporting Section
Philadelphia Financial Center
Bureau of the Fiscal Service
Department of the Treasury
PO Box 603
Bensalem, PA 19020
Telephone: 215-516-8106
Email: [email protected]
Direct requests for FS Form 2431 to the federal entity's printing officer. The
printing officer should forward a Portable Document Format (pdf) file of the
request to:
Mail Stop: CSAPS, Team 2, Room C-836
U.S. Government Printing Office
732 North Capitol Street, NW
Washington, DC 20401
Telephone: 202-512-1239
Email: [email protected]
Direct matters regarding blank check stock security, loss, or theft to:
Physical Security Branch
Bureau of the Fiscal Service
Department of the Treasury
6505 Belcrest Road, Suite 613
Hyattsville, MD 20782
General information and to report incidents: 304-480-7777
Direct inquiries concerning all other matters, including requests for approval
of the placement of printing on checks and approval of additional printing, to:
Department of the Treasury
Bureau of the Fiscal Service
Policy and Oversight Division
3201 Pennsy Drive, Building E
Landover, MD 20785
Telephone: 202-874-6781
Appendices Listing
Appendix FormTitle
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No.
1FSForm 2431
U.S. TreasuryChecks Order Form
2-------------
Definition of a Secure Room &Vault Area
3FS Form1186
Signature File - U.S. TreasuryCheck Order
4FS Form3023
Signature Specimen SubmissionForm
Summary of Updates
Section No.SectionTitle Summary of Change
Introduction Added verbiage andhyperlink redirectingreaders to theTFM Glossary.
5015 SubmissionofDisbursingOfficers'SignatureSpecimensandDesignationofAssistants
Deleted verbatim textreference -- "Per 31 U.S.C.§ 3321 and TreasuryDirective 16-36, the ChiefDisbursing Officer (CDO) isthe only official who maydesignate Fiscal ServiceDisbursing Officers."
5030.20 Loss orTheft
Updated hyperlink for "TFMVolume I, Part 4, Chapter6000."
All Changed "agency/ agencies"to "federal entity/ federalentities".
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